The project comprises the civil and mechanical engineering works required for rehabilitating and upgrading Ninh My and Doi Canals with a view to provide adequate quantities of irrigation water and agricultural drainage for approximately 5,900 hectares 7,750 hectares of agricultural land respectively. The work covers Ninh My and Doi Canals side slope lining with masonry stone with total lengths of approximately 10 kilometers and 15 kilometers respectively; dredging, enlarging, and re-aligning the canal section; construction of approximately 6 reinforced concrete box-section culverts, in addition to all complementary work. Moreover, the project includes land acquisition, institutional support and consultancy services. The Project is expected to be completed by the end of the year 2018.

The total cost of the Project is estimated at about 392.78 billion Vietnamese Dong, equivalent to about KD 5.44 million, of which about  16.14 Vietnames Dong, equivalent to about KD 0.22 million will be in foreign currency and representing about 4.1 of the total cost of the project.  The loan provided by the Fund will cover about 73.6 of total project cost, while the balance would be covered by the government of Vietnam.

The loan is made for a term of 24 years, including a grace period of 4 years and the Loan will be amortized in 40 semi-annual installments, the first of which shall fall due on the first date on which interest and other charges on the loan shall fall due after the elapse of the grace period. The loan will bear interest at the annual rate of 2% in addition to a loan administration charge at the annual rate of 0.5%.

It is worth mentioning that by extending this loan, the Fund will have provided 12 loans to the Socialist Republic of Vietnam, as the Fund already made 11  loans to the Socialist Republic of Vietnam with a total amount of about KD.39.5 million (equivalent to about US$ 134.4 million) for the financing of projects in various sectors. The Fund also provided to Vietnam a technical assistance in the amount of about KD. 84 thousand (equivalent to about US$ 285 thousand) for the study of a project in the agro-industrial sector.